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HIPAA: Data Trade Prosecutions on the Horizon?

By Ronald H. Levine

Mention HIPAA (the Health Insurance Portability and Accountability Act) to a typical CEO, and boredom sets in. Many corporate leaders remain unaware of the risks of HIPAA non-compliance, but the Act includes a criminal statute that creates vast potential exposure for health care providers and other players in the health care “data trade.”

Enacted in 1996, HIPAA was meant to increase “the efficiency and effectiveness of the health care system by facilitating the exchange of information with respect to health plans, health care clearinghouses and health care providers who transmit information in connection with [financial and administrative] transactions.” South Carolina Medical Assoc. v. HHS, 327 F.3d 346, 348 (4th Cir. 2003).

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